Hi 38, who's BB?

KUALA LUMPUR, April 7 (Bernama) -- Palm oil export earnings will touch a record high of RM50 billion this year with prices expected to maintain its bullish run, according to the Malaysian Palm Oil Board (MPOB).

In tandem with soaring palm oil prices, export revenue has increased 41.8 percent to RM45.1 billion compared to RM31.8 billion in 2007, MPOB chairman Datuk Sabri Ahmad said Monday.

He said continued tight supply and high demand of vegetables oil as well as adverse weather conditions could see a continued bull-run of palm oil prices in 2008 and 2009.

"We expect the world demand for vegetable oils and fats to increase within the next three to four years," Sabri said at the MPOB Programme Advisory Meeting 2008 here.

"China and India are expected to take the lead in demand for palm oil due to mushrooming domestic industries and increasing consumption," he said.

Sabri said the palm oil industry recorded "phenomenal performance" in 2007, with the average price of crude palm oil at RM2,530.50 per tonne as against RM1,510.50 the previous year, up by 67.5 percent.

However, the production of crude oil declined marginally by 0.4 percent to 15.823 million tonnes from 15.880 million tonnes the previous year, he said.

The total oil palm planted area increased by 3.4 percent in 2007 to 4.304 million hectares from 4.165 million hectares in 2006, he added.

Sabri said palm oil exports declined by 4.8 percent to 13.737 million tonnes in 2007 from 14.423 million tonnes the previous year.

China maintained its position as the largest importer of Malaysian palm oil for the sixth consecutive year, importing 3.84 million tonnes or 27.9 percent of total, he said.

Other major importers included the European Union which bought 2.06 million tonnes or 15 percent, Pakistan which recorded 1.07 million tonnes or 7.8 percent and the United States which imported 0.79 million tonnes or 5.8 percent.

Sabri said the reduction in the import of Malaysian palm oil products by traditional markets such as India and efforts to penetrate new markets have to be addressed so as to ensure increased marketability.

He also said that research and development must continue to increase productivity, enhance value addition and generate wealth in a sustainable manner.

-- BERNAMA

 

Looks like fundamentals still very strong for palm oil stocks.     Today's CPO futures closed up sharply. Prices for counters like golden agri, indo-agri, first resources and wilmar should see strong support and continue to trend upwards based on fundamentals technical indicators.  Seeing large volume accumulations these two trading days. I repeat that it will be foolhardy for anyone to try and short these counters. Cheers